You Probably Need Life Insurance If…
- You have a mortgage – Could your family keep the home without your income?
- You have children – They depend on your income for housing, food, childcare, education
- You have a partner who depends on your income – Even partially
- You have debts – Joint debts (like a joint mortgage) become the survivor’s responsibility
- You are a stay-at-home parent – Replacing childcare costs over £30,000/year
- You are a business owner – Your death could affect employees, partners, and the business itself
You Probably Do NOT Need Life Insurance If…
- You are single with no dependants – Nobody relies on your income
- You are retired with no debt – Your pension covers your partner; mortgage is paid off
- You have substantial savings/investments – Enough to support your family long-term without your income
- Your children are independent adults – They no longer depend on you financially
The test: Ask yourself – “If I died tomorrow, would anyone face financial hardship?” If yes, you need life insurance. If genuinely no, you probably don’t.
What About Death in Service Through Work?
Many employers provide death in service benefit – typically 2–4x your annual salary. This is valuable, but consider:
- It ends if you change jobs or are made redundant
- 2–4x salary is usually not enough for families with a mortgage and children
- A personal policy gives you portable cover that you control
Employer cover is a great start, but most families need additional personal cover on top.
How Much Would You Need?
If you do need cover, a common formula is:
- Minimum: Enough to clear your mortgage and debts
- Better: Mortgage + 5x annual salary
- Comprehensive: Mortgage + 10–15x annual salary + education costs
Use our detailed calculator guide for a personalised figure.
Frequently Asked Questions
Generally no, unless someone relies on your income or you have joint debts.
Possibly. 2–4x salary is usually not enough, and it ends if you leave your job.